Is Abu Dhabi considering BP investment?

While certain partners of BP have been reassessing future deal with the company, the UAE seems to be going the other way with Abu Dhabi Crown Prince Sheikh Mohammed bin Zayed Al Nahyan saying the emirate is considering making an investment in the troubled oil giant.

Last week, CEO Tony Hayward said that he had a "very good" meeting with the crown prince as industry insiders speculated that BP might be seeking Middle East investment. The announcement came after some news reports suggested the company could potentially be filing for Chapter 11, with its share price having almost halved in the wake of the worst oil spill in US history.

However, as the spill gets closer to being contained, Prince Sheikh Mohammed bin Zayed Al Nahyan has said in an interview, when asked about potentially buying a stake in the company, "We are still thinking about it. We are looking across the board. We have been partners with BP for years."

In response, Robert Wine, a spokesman for BP in London has said, "We would welcome any investor buying or increasing their stake", though declined to comment on Abu Dhabi in particular.

As a direct result of the speculation, BP shares have risen by 26 percent of the past week.

Other MENA investment

Abu Dhabi is not the only one to show interest in buying a stake in BP. While Shell and Exxon Mobil have been mentioned, enthusiasm is set to be minimal. Instead, speculative buyers that have been mentioned have included the International Petroleum Investment Company (IPIC), a state-owned Abu Dhabi business, and the Qatar Investment Authority, who stepped in to buy shares and provide much of the backing needed to avoid Barclays seeking a government handout during the recession.

Senior figures in Middle East financial circles said proposals linked to a possible strategic investment have been presented to BP, with one unnamed source saying, "BP knows there is potential support from the Middle East."

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